CYH - Medical Facilities: Investors Should Look Beyond This 8.7%-Yielding Stock's Near-Term Weakness
Investment Thesis
Medical Facilities Corporation (MFCSF) (TSX:DR) delivered poor first quarter 2019 earnings result as the company saw a significant decline in revenue in its UMASH facility. We believe MFC’s quarterly results can be lumpy from time to time and hence investors should desire a higher margin of safety. Looking forward, MFC’s healthy balance sheet should help it to continue to pursue acquisitions especially in the area of ambulatory surgery centers. MFC’s shares are currently significantly undervalued when compare to its peers. It also offers an attractive 8.7%-yielding dividend. We believe